I just updated the latest firmware upgrade for the FLAC compatability, and was hoping that the upgrade would also address the gapless playback issue. I have quite a few mixes and live concerts which flow seamlessly from track to track but the Fuze puts about a .25 second pause between each track. It ranges between mildly annoying to being a major buzzkill, especially when listening to tightly-mixed house music, and Grateful Dead shows.
The only workaround I have to to combine each song into one big file, but then it makes it harder to navigate.
Sandisk people, any chance that you can address this issue in a future upgrade, maybe something in the settings to enable gapless playback? I suppose there may be some people who listen to regular albums with songs and want that pause, so making it configurable would probably be a good idea.